Decide on the future of DeFi in the pNetwork DAO in Eidoo App
Blockchain DAOs (Decentralized Autonomous Organizations) are a relatively new concept that tackles the problem of a small group of people making big decisions on behalf of the masses.
Blockchain technology has made it possible to redistribute decision-making power to the wider community of participants in a more objective and transparent manner. It’s a new way of giving token holders a contributing role in governance systems by means of group intelligence.
More and more blockchain projects are now implementing DAOs, indicating the growing popularity of this new governance tool.The above fact indicates that ordinary people have been eager to take control and collaborate with their communities to govern the projects they support and are invested in.
People who regularly participate in DAOs are typically crypto holders united by a common interest. It is a tight-knit community of people who put their money where their mouth is by staking coins to support the development of the project they feel strongly about.
In essence, these DAO blockchain projects are the perfect place to empower crypto holders and encourage them to interact with each other according to a set of rules created by and enforced upon every member equally. By implementing such a governance model, a high level of fairness and transparency is achieved.
DAO participants do not enter formal legal contracts but are steered by incentives tied to each chain’s native token. Furthermore, all the rules are enforced via smart contracts that are executed only when the required conditions are met.
DAOs can be architecturally and geographically decentralized — by having independent actors running different operator nodes and being subject to different jurisdictions.
In the case of pNetwork — a progressively decentralized platform focused on enabling cross-chain composability — 66% of the total native token circulating supply is staked in the blockchain DAO. That makes 40 million out of 60 million circulating PNT staked.
pNetwork DAO voters who stake PNT tokens for two years have the opportunity to vote on a variety of proposals steering the development of the project. Moreover, apart from having the power to influence the project’s development, their decision-making efforts are further incentivized by competitive interest rates of 42% of the stake for the first year and 21% for the second.
Not only is this system designed to give back to the community for taking active participation in the project’s development, but it also enables pNetwork’s growth.
The voting mechanism in the pNetwork DAO can be accessed directly from the Eidoo crypto wallet. App users can vote and monitor live voting stats from their mobile, as shown in the following screenshots.
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